The telemedicine market is expected to demonstrate a healthy 15.8% CAGR during the forecast period of 2020–2030. The key factors driving this growth include the rising cost of healthcare, growing cases of chronic and lifestyle-associated diseases, increasing telemedicine grants and funding from the government, rising medical tourism activities, and surging demand for monitoring services for remote patients in developing economies. These factors will drive the industry massively from $27.8 billion in 2019 to $144.2 billion by 2030.
Patients and healthcare providers worldwide are concerned about the increasing healthcare cost across nursing homes and hospitals. The surging cost of healthcare products and services, escalating administrative costs, expensive drugs and technologies, and soaring physician fees are significantly contributing to the skyrocketing healthcare cost. To curtail the rise, people are shifting toward telemedicine, as it offers quality care at a lower cost, without people having to necessarily visit a medical center. This is why the market growth is being boosted by the COVID-19 pandemic, which has forced people into their homes.
The geriatric population is increasing across the world. As per the World Population Aging report by the United Nations Department of Economics and Social Affairs, the number of people aged 60 years and over rose from 382 million in 1980 to 962 million in 2017. This number is further projected to increase to 2.1 billion by 2050. Aged people are more susceptible to diseases and need regular care in order to maintain their conditions. However, it’s hard for older people to go to medical facilities again and again for check-ups, which is why, the requirement for remote healthcare facilities is growing rapidly.
The primary trend in the telemedicine market is the increasing emphasis on technological advancements. Companies are acting in tune with this trend and launching innovative products to connect and integrate the home and healthcare. For instance, SnapMD’s Connected Care platform offers cost-effective options to healthcare systems to extend its care models, which include virtual visits. Another key player in the industry, AMD Global Telemedicine Inc. launched OnDemand Visit, a direct-to-consumer telehealth platform, in 2018. The platform offers a real-time virtual medical visit through computers or mobile phones.
The rising incidence of chronic diseases is set to favorably impact the telemedicine market growth during the forecast period. The lack of access to preventive care and lifestyle changes have led to an increase in the cases of chronic diseases, such as diabetes, cancer, respiratory diseases, and cardiovascular diseases (CVDs). These diseases are caused due to oxidative stress, environmental factors, and genetic disposition, and they require prolonged quality care, which costs a lot. The cost can be curtailed by relying more on telemedicine, which is why the market will grow.
The telemedicine market generated the highest revenue in North America in 2019. The key factors for this dominance include an increase in telemedicine grants and funding from the government, growth in the aging population, and rise in the cases of chronic and lifestyle-associated diseases. As per the data published by the United Nations (UN) in its World Population Ageing 2019 report, the region will host around 96.3 million people who are 65 years or above by 2050. These factors will also help the region in maintaining its dominance during the forecast period.
Thus, technological advancements and the rising cost of healthcare will immensely boost the market growth in the coming years.
This study covers
• Major factors driving the market and their impact during the short, medium, and long terms
• Market restraints and their impact during the short, medium, and long terms
• Recent trends and evolving opportunities for the market participants
• Historical and the present size of the market segments and understand their comparative future potential
• Potential of on-demand logistics services, so the market players make informed decisions on the sales of their offerings
• Competitive scenario of various market segments across key countries in several regions for uncovering market opportunities for the stakeholders
• Major players operating in the market and their service offerings
• Recent strategic developments by the major players in the market
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